OSFI Says Tokenized Deposits Have Same Legal Status As Traditional Deposits

Canada's Office of the Superintendent of Financial Institutions said tokenized and other digital deposits are legally no different from traditional deposits, stressing that the underlying technology does not determine the legal nature of a financial product or service. According to ChainCatcher, OSFI said financial institutions must ensure innovation activities, including those carried out by third parties, comply with applicable laws and regulations. The regulator also said institutions must follow its B-13 technology and cyber risk management guidance and B-10 third-party risk management guidance. It added that firms should consult with their OSFI supervisor before launching any new product or service and seek legal advice when necessary.